Risk Assessment, Management and Incident Investigation

Each plant and department has established a hazard analysis team in accordance with ISO-45001:2018 and the U.S. OSHA PSM system. It identifies and assesses, on a regular and as-needed basis, the hazards that may be caused by routine, non-routine, changed process operations, as well as various operations. The relevant units and personnel are responsible for implementing the hazard assessment improvement measures within the time limit, and the plant or department PSM personnel shall be responsible for regularly tracking the implementation to reduce the risk of hazards.

Process hazard analysis (PHA): A person at or above the position of level 1 supervisor shall serve as the team leader. The team leader shall possess complete process hazard analysis skills and appropriate experience, and shall have received various process hazard analysis training courses provided by Formosa Plastics Group, domestic and foreign training institutions, or the Safety and Health Management Office. At least one of the team members shall have obtained a process safety assessor certificate.

Operational safety analysis: Employees and contractors participating in the actual implementation or operation are responsible for analyzing operating procedures (e.g., operation manuals, work specifications, work rules, maintenance regulations, construction regulations, or job-specific work specifications). Based on the possibility of operational hazards (frequency of exposure and probability of occurrence) and the severity assessment, the source of hazards and existing protective measures are included, scored, and the risk level is determined. According to the risk level, immediate improvement or response measures shall be taken to reduce the hazard, or the responsible department personnel shall implement the improvement within a specified period of time until the case is closed.

In the event of an accident, false alarm, abnormal values measured in the operational environment or non-compliance with laws and regulations, non-routine risk assessments must be performed first to reduce the risk of occurrence. Through continuous risk assessment and improvement, potential hazards are reduced to prevent relevant personnel from being punished for causing occupational hazards or accidents.

Implementation of Procedural HazOp

The 3-year Procedural HazOp Project was formulated to prevent potential process hazards or accidents from occurring during process equipment repair/maintenance, period with relatively unstable process conditions, such as when operations commence/cease or early stages after resuming operations, when switching between processes, or during non-routine operations, such as modifying process conditions and tank cleaning. A total of 72 operations were completed this year with an implementation rate of 100%, and focused on emergency or abnormal shut-down operations.

Ensure the Health of Employees and Stakeholders and Reduce the Risk of Exposure to Hazardous Substances

To reduce the health risks of employees and related stakeholders, the Company has comprehensively reduced the use of Level 1 chemicals that are chronic health hazards (including carcinogens, genetic mutations, and reproductive toxicity, hereinafter referred to as “CMR substances”) by banning their use or developing alternatives with suppliers.

Occupational Accidents and Accident Prevention Management

All personnel, including contractors, workers, and visitors, who discover that there is a risk of immediate danger while performing their duties in the workplace of the Company, may arbitrarily stop work and retreat to a safe place as long as it does not endanger the safety of other personnel, and report to the Company or relevant personnel for improvement to reduce the risk and prevent accidents.

In 2024, our death rate due to occupational accidents was 0, frequency of disabling injuries was 0.47, severity of disabling injuries was 7, and comprehensive injury index was 0.06, the number of occupational accidents was 3 more than in 2023. There were 5 occupational accidents involving employees and 3 occupational accidents involving contractors, resulting in 8 disabling injuries.

Ratio of Occupational Injuries of Employees

Ratio of Occupational Injuries of Contractors

Note 1: Severity of disabling injuries (SR) = (total number of days lost × 106) / total work hours elapsed
Note 2: Frequency of disabling injuries (FR) = (number of disabling injuries × 106) / total work hours elapsed
Note 3: Comprehensive injury index = ((FR*SR)/1,000)^(1/2)
Note 4: For the past 3 years, accidents at work of the Company have only happened to men and all of them happened in our Mailiao Plant in Yunlin County; the number of employees injured at work in 2024 was 5.
Note 5: Statistics are only for formal employees and fixed-term contract employees of FPCC. The contractor tripped and fell but was not hospitalized.

Comparison of FPCC and the Industry’s Comprehensive Injury Index in 2022-2024

Note: Industry data for 2024 was not provided because it has not been announced by the Ministry of Labor yet

Occupational Accident Prevention

We analyze the cause of incidents and formulate prevention plans based on investigation results for parallel implementation. We assess and control risks through JSA and PHA to discover potential hazards and implement controls in advance, thereby ensuring employee safety and health.

Findings from analyzing the 5 accidents involving employees are as follows: The main causes of employee accidents were failure to maintain a firm footing on the stairs when walking down the stairs and on the work platform (2 cases), failure to fully store the work platform (2 cases), and failure to pay attention to the placement of fingers when carrying items, resulting in pinching. After discussion, most of the occupational accidents in 2024 were isolated incidents of personal negligence and not recurring incidents, so the promotion of “cultivating safe habits when going up and down stairs” from 2023 will continue.

In 2024, we analyzed the annual occupational accidents within the Group and set “re-examination of standard operating procedures – standards for wearing PPE when handling abnormalities” as our primary goal.

Regarding the prevention of contractor occupational accidents, we will continue to promote the corresponding measures for “labor safety personnel and supervisors of contractors to conduct self-inspections, and related management personnel (supervisor, construction safety personnel, safety supervisors, and construction supervisors) to maintain safety standards before, during, and after operations”.

Details of Violations of the Occupational Safety and Health Act in 2024

Note: Matters are disclosed by the date of occurrence.

Statistics of Fines Imposed by the Competent Authority in 2022-2024